The COVID-19 pandemic has in the recent past shaken up some of the economies of developed countries. You may struggle with productivity especially if you are working from home or facing a potential salary decrease or a lay-off. Despite the feeling of uncertainty, you can still take action.
- Create a budget
Now is an excellent time to take a close look at your spending because money may be tight going forward, so saving wherever possible will only help you in the future.
2. Pay down high-interest debt
Not paying your debts does not mean that the debt goes away.
If you have any high-interest debt—say, a personal loan—and your income has not yet decreased, consider paying off that debt now, even if it means a small financial squeeze in the short-term, if you are able.
If you have no source of additional income to clear your debts at the moment, consider talking to your lenders or bank on a repayment scheme or discuss ways in which you can pay off your debts whenever your finances are in order
3. Look at your investments
The key word here is look: Don’t touch (for the most part). No one can predict what will happen short term, but over the long run, the economy and markets will come roaring back.
4. Consider insurance options
You may want to look at some of the insurance options your bank is offering especially on the essential areas like health – premiums to help you cushion yourself in case your salary is not enough to sustain medical emergencies
5. Talk about money with your family
Money stress is real therefore, do not be afraid to explain to your family that market fluctuations are normal, be frank about any negative financial impacts you may experience and discuss ways you can save as a family.